The Reason Why Netflix Took Off on Wednesday [View article]
All ponzi scheme unraveled when the market goes down. Enron, Worldcom, Madoff, housing and banking sectors....it's only matter of time before the true value show. I'm sure people made money on all of the mentioned names but for every one that made money there are probably 10 or hundreds that lost just to feed into the scheme.
Netflix Q1 Earnings: Beginning of the End [View article]
The margin will get squeezed, maybe not this quarter, but in the future. And the stock price does not reflect that. They are not putting all of the liabilities that go with the content deals on their books. Hastings acknowledged margin will shrink back this year to 14%.
Netflix Q1 Earnings: Beginning of the End [View article]
Operating cash flow is negative if you take out net working capital. The cash you created from working capital has to go back in one day. They should've used the cash reserve for future content deals instead of buying shares back. You have $300 million account payable and $1 billions potential liability off future content deals and yet you spent $100 million buying stock back - that's ridiculous!
Netflix Q1 Earnings: Beginning of the End [View article]
Good catch Joey. I was looking at the financial statements and caught the same thing. Large influx of operating cash flow stemmed from delaying payments to its vendors. ~$70 mil sequential from last quarter. The fact is they spent a lot of money buying content this quarter and it is sitting on the balance sheet. Eventually that will flow to income statement and hitting margin hard.
Digging Through Netflix's Q1 Financials [View article]
Can you look into its account payable practice? There has been a huge increase in account payable for the last couple of quarters which account for most of its operating cash flow.
Netflix: New Competition a Threat to the Multiple, Not the Business [View article]
"Here's a question: What can these other tech behemoths offer that Netflix cant? Perhaps one day the service will be free and paid for by advertising. Maybe Zynga is jumping in next? "
Nothing. But they can squeeze margins on the whole content delivery business. iTunes also has a huge content library already. Since all of them are offering a same product (content), the only way to compete is by price. Margin shrinkage = lower multiples. Also competition will also slow Netflix's 30%+ growth.
Too much uncertainty. The steep yield curve right now is generating huge profit for the banks so they can plug the hole on credit losses from the bubbles. If the yield curve flatten, you won't see that type of earnings again. And 10x earnings is very aggressive. Also, you don't know what the current administration is going to do to big banks.
Sprint-Nextel Continues to Build Momentum [View article]
The facts remain that you can get better bang for the buck using Sprint and EVO vs iPhone and AT&T considering all the cost. 4th gen iPhone isn't even up to 4G speed. AT&T hasn't mention a thing about building 4G network. Verizon wireless LTE 4G isn't rolling out until 2011. AT&T 3G might be good in Sacramento, but it's a horror story in NYC. AT&T is clinging on their exclusive agreement with Apple - that might expire sooner or later. When and if that expires, its an open field b/w Sprint and Verizon. And no, Sprint will not run out of money building out 4G, because it is a JV set up with Google funding behind it.
TheStreet.com Wrong on Sprint, Again [View article]
Does anyone actually look at the cash flow that Sprint squeeze out? Forget 4G and the ownership in CLRW for the moment.
Sprint can generate ~$4 bils in OCF. Roughly $2- 2.5bil in FCF after Capex. Earnings stay negative because of writeoffs/depreciation of legacy assets and lower revenue - which is good because it provide a nice tax writeoff as well. Sprint has improved churn rate of postpaid and aggressively moving into prepaid using the assets it already has - meaning cash flow will probably increase. Debt is not a problem when they are generating enough cash to pay it off as it mature - worst to come to worst they can still roll the debt over in today's low interest rate environment. Adding 4G and EVO is just a cherry on top. As a Sprint investor, I don't expect 4G and EVO generate majority of the revenue, but it is good to see the company moving toward the right direction as far as technology is concern. Once iPhone is off AT&T exclusive agreement- it is going to be fair game b/w Verizon and Sprint.
Reverse stock split does nothing to the intrinsic value of the company. If Citigroup was to go back to its market cap of 2006-2007, the stock will be at $7-8. To reach $12 Cramer's target, it would have to expand it's balance sheet to over $2 trillion dollars again.
What's So Great About Having Really Sound Banks, Anyway? [View article]
I tell you why you want sound banks that don't take "stupid" risk - such as lending $800k to a guy that make $50k to buy a house.
The idea of sound bank/banking system is that people with good credit and good ideas can bring them to work. And people with bad or no credit should learn how to manage money before they get to borrow again.The economy as a whole would make better decisions on investment and allocation of assets instead of gassing of the next asset bubble.
So yes, sound bank feeds into investment responsibilities and accountabilities.
Solarfun: The Only Asian Solar to Raise Guidance? [View article]
The company hired a new CEO and turned around and actually made profit prior to the crash in 2008. So prior to that, you were right about them not making a dime.
On Sep 23 11:20 AM jerrydd wrote:
> > ECD(seekingalpha.com/symbo...) will never have any activity > because they have never made a profit from making anything. > > The only money they have made in the various forms of the company > is gov subsidies, ripping off customer and stockholders. > > The only other thing they make is misleading press releases to con > the above. Check out their history and you'll see.
The Reason Why Netflix Took Off on Wednesday [View article]
Is Now The Time To Buy Netflix? [View article]
Netflix Q1 Earnings: Beginning of the End [View article]
Netflix Q1 Earnings: Beginning of the End [View article]
Netflix Q1 Earnings: Beginning of the End [View article]
Digging Through Netflix's Q1 Financials [View article]
Digging Through Netflix's Q1 Financials [View article]
Netflix: Expecting Higher Near-Term Volatility Into Earnings [View article]
Netflix: New Competition a Threat to the Multiple, Not the Business [View article]
Nothing. But they can squeeze margins on the whole content delivery business. iTunes also has a huge content library already. Since all of them are offering a same product (content), the only way to compete is by price. Margin shrinkage = lower multiples. Also competition will also slow Netflix's 30%+ growth.
Time to Buy Wells Fargo? [View article]
Sprint-Nextel Continues to Build Momentum [View article]
TheStreet.com Wrong on Sprint, Again [View article]
Sprint can generate ~$4 bils in OCF. Roughly $2- 2.5bil in FCF after Capex. Earnings stay negative because of writeoffs/depreciation of legacy assets and lower revenue - which is good because it provide a nice tax writeoff as well. Sprint has improved churn rate of postpaid and aggressively moving into prepaid using the assets it already has - meaning cash flow will probably increase. Debt is not a problem when they are generating enough cash to pay it off as it mature - worst to come to worst they can still roll the debt over in today's low interest rate environment. Adding 4G and EVO is just a cherry on top. As a Sprint investor, I don't expect 4G and EVO generate majority of the revenue, but it is good to see the company moving toward the right direction as far as technology is concern. Once iPhone is off AT&T exclusive agreement- it is going to be fair game b/w Verizon and Sprint.
Citigroup Warrants a Closer Look [View article]
What's So Great About Having Really Sound Banks, Anyway? [View article]
The idea of sound bank/banking system is that people with good credit and good ideas can bring them to work. And people with bad or no credit should learn how to manage money before they get to borrow again.The economy as a whole would make better decisions on investment and allocation of assets instead of gassing of the next asset bubble.
So yes, sound bank feeds into investment responsibilities and accountabilities.
Solarfun: The Only Asian Solar to Raise Guidance? [View article]
On Sep 23 11:20 AM jerrydd wrote:
>
> ECD(seekingalpha.com/symbo...) will never have any activity
> because they have never made a profit from making anything.
>
> The only money they have made in the various forms of the company
> is gov subsidies, ripping off customer and stockholders.
>
> The only other thing they make is misleading press releases to con
> the above. Check out their history and you'll see.